Galasys PLC, a leading provider of ticketing systems and solutions to the fast growing theme park industry in Asia, is pleased to announce its first theme-park IT outsourcing (“TiTo”) contract (the “Contract”) since its admission to AIM pursuant to which Galasys will provide software and hardware for the entire ticketing systems to Wenzhou Dolphin Bay Water Park (“Wenzhou Water Park”).
The Wenzhou Water Park is the largest of its kind in Wenzhou, China and consists of an outdoor park and an indoor aquarium. The outdoor park will operate only during summer, whilst the indoor aquarium will run all year long. With a total investment of 300 million Yuan (c. £28 million), the Wenzhou Water Park will cover a ground area of c. 88,500 sq.meter and a maximum capacity of 30,000 people at one time.
Under the terms of the Contract, Galasys will provide the solution and services to Wenzhou Water Park pursuant to the Group’s TiTo model. The project implementation will commence in June and complete within 3 months. The total value of this is 916,000 Yuan (c. £88,000). In addition, instead of taking standard project fees as the Company has traditionally done in the past, Galasys will receive fees based on a revenue share from the sale of certain allocated tickets over the coming years. Consequently, the Board expect to reap a substantially higher return based on this TiTo model as compared to project-based pricing structures.
This TiTo project is the first TiTo contract following the Company’s successful admission to AIM, and the total of TiTo contracts secured by the Group this year is now four with an aggregated value of more than 2.8 million Yuan (c. £269,000).
Commenting on the announcement, Mr. Seah, Chief Executive of Galasys, said:
“We are pleased to announce that we have secured our fourth TiTo contract in China whereby payment for the provision of ticketing IT software and hardware toWenzhou Water Park will be tied to the sales of the tickets under a revenue share model. This is another step in our plan to transform our current project based business and revenue model and to correlate our revenue more directly to the number of visitors to our theme-park customers.”
(Source: http://www.galasystec.com/investor-relations/latest-announcements.aspx, 18 June 2014)
